| ESTATE |
LEGAL CITATION: |
M.C.L. 205.201 et seq.; 1899 PA 188. |
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| YEAR ADOPTED: |
1899 (referred to as Inheritance Tax until amended by 1993 PA 54.) |
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| BASIS OF TAX: |
Privilege of transferring an interest in the property of a decedent. |
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| MEASURE OF TAX (BASE): |
Gross estate as determined under federal internal revenue code.
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Estate Tax Elimination
The federal tax-reform package passed in 2001 eliminated the allowable federal credit over a four-year period beginning in 2002. The state took no action to offset the federal change and the state Estate Tax revenues will be eliminated in FY2007.
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| RATE: |
Tax imposed up to maximum allowable federal credit for state inheritance taxes paid. |
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| ADMINISTRATION: |
Michigan Department of Treasury, Bureau of Revenue. |
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| REPORT AND PAYMENT: |
Due by same date as federal estate tax. |
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| DISPOSITION: |
General Fund. |
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| 2004-05 COLLECTIONS: |
$106,543,000 |
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| Estate Tax Law Changes |
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Historic Michigan Estate Tax Revenues
| A |
1899 |
PA 188 |
Inheritance Tax established (Direct heirs 2 - 8 percent; collateral heirs 10 - 15 percent). |
| B |
1978 |
PA 628 |
Increased maximum tax rate on direct heirs to 10 percent; increased minimum tax rate on collateral heirs to 12 percent and maximum tax rate to 17 percent. |
| C |
1993 |
PA 54 |
Inheritance Tax replaced by Estate Tax. |
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THE NUMBERS BEHIND THE CHART |
